“Stop the Cash Crumble to Equalise the Credit Crunch” Petition

Stop the “Cash Crumble” to Equalise the “Credit Crunch” is a petition targeted at the Treasury Select Committee.

It requests an inquiry into a long term view of the money supply, i.e. the amount of money put in circulation by financial institutions.

The money supply is composed of “Cash” or “narrow money” and “Credit” or “broad money” in central bank speak. Analysis of the publicly accessible data base of the Bank of England revealed serious increases of “wholesale Credit” and “retail Credit” whereas the Cash contribution decreased steadily, especially since 1996. See Green Credit for Green Purposes submitted to the Treasury Select Committee in response to the Stern inquiry and Sovereignty & Seignorage. This was written for Peter Roderick, Co-Director of the Climate Justice Program, in analogy to Contraction & Convergence – a global framework for carbon emissions – after a seminar of the Environmental Law Foundation on the legal and economic challenges of climate change.

The imbalance between a Nation’s Cash and Credit represents a serious imbalance not only of power between the City which generates interest-bearing money (Credit) and and the Treasury which is responsible for interest-free money (Cash), but also for the “financial sector” and the “real economy”. More on FAQs.

The “Third Way” should be “Public Credit” which different people have been campaigning for for decades and even centuries.

The trouble is that, mathematically, compounding of interest upon interest is exponential, i.e. unsustainable. Problems are therefore caused regularly, especially in cycles of around 27 years or multiples of 27, like in the Kondratiev wave.